Shanghai releases the "Hu Seven Rules" for the real estate market with many highlights! Further reduction of housing purchase restrictions

To better meet residents’ rigid and improved housing needs and promote the steady and healthy development of the real estate market, on February 25, the Municipal Housing and Urban-Rural Development Management Committee, Municipal Housing Management Bureau, Municipal Finance Bureau, Municipal Taxation Bureau, and Municipal Housing Provident Fund Management Center jointly issued the “Notice on Further Optimizing and Adjusting the City’s Real Estate Policies” (hereinafter referred to as the “Notice”), which will take effect from February 26, 2026.

Further Reduction of Housing Purchase Restrictions

To serve livable and comfortable housing, promote balanced employment and residence, and focus on meeting residents’ reasonable housing demands, the “Notice” clearly states further adjustments to housing purchase restrictions.

1. Shorten the required years of social security or individual income tax payments for non-Shanghai residents to buy housing inside the Outer Ring Road. For non-local households or adult singles purchasing housing inside the Outer Ring, the years of social security or personal income tax payments required are adjusted to a continuous payment of at least 1 year prior to the purchase date.

2. Eligible non-Shanghai residents can purchase an additional housing unit inside the Outer Ring. Non-local households or adult singles who have paid social security or personal income tax in the city for 3 years or more can, based on existing restrictions, buy one more housing unit inside the Outer Ring.

3. Eligible groups holding the “Shanghai Residence Permit” can purchase housing in the city. Non-Shanghai households or adult singles holding the permit for 5 years or more can buy one housing unit in the city without providing proof of social security or income tax payments.

According to these regulations, non-Shanghai households or adult singles who have paid social security or personal income tax continuously for 1 year or more before the purchase date can buy unlimited units outside the Outer Ring but are limited to 1 unit inside the Outer Ring; those who have paid for 3 years or more can buy up to 2 units inside the Outer Ring; holders of the “Shanghai Residence Permit” for 5 years or more are limited to 1 unit citywide.

For inquiries related to housing purchase restrictions, please call the real estate transaction industry service hotline “962269.”

Optimizing Housing Provident Fund Loan Policies

To leverage the support role of the Provident Fund in housing consumption and meet residents’ livable and comfortable housing needs at different stages, the “Notice” stipulates policy improvements.

1. Appropriately increase the maximum housing provident fund loan amount. The maximum loan for families purchasing their first home is increased from 1.6 million yuan to 2.4 million yuan. With additional policies for families with multiple children and green building purchases (up to 35% increase), the maximum loan amount in the city can reach 3.24 million yuan. The maximum loan amount for second homes is also increased accordingly.

2. Optimize the recognition of the number of loans. For families who have used provident fund loans before, if they currently have no housing or only one housing unit in the city and have fully repaid previous provident fund loans, they can apply for a new loan when purchasing another property.

3. Expand support for multi-child families purchasing homes. The support policy extends from first-time home purchases to second-home purchases. For multi-child families buying a second home, the maximum loan amount can be increased by 20% based on the city’s maximum loan limit.

For inquiries about housing provident fund loan policies, please visit the Shanghai Housing Provident Fund official website or call the hotline “12329.”

Improving Personal Housing Property Tax Policies

To support residents’ replacement and improvement needs, the “Notice” states that starting January 1, 2026, for resident families with children who are adults, if the purchased property is the only home for the adult children’s family, personal housing property tax will be temporarily exempted. Specifically, if the home was jointly owned with parents or grandparents (including outside the city) before the minor’s age or before the pilot program of personal housing property tax in the city, and the new or replaced home remains the only residence for the adult children’s family, tax exemption applies.

If the family’s housing situation changes and meets the above conditions, they can re-declare and have their personal housing property tax assessed at the tax authority where the property is located. From the month following re-assessment, tax payments will be adjusted, and any overpaid taxes after January 1, 2026, will be refunded.

For inquiries about improving personal housing property tax policies, please call the tax consultation hotline “12366.”

Shanghai implements the spirit of the Central Economic Work Conference, focusing on stabilizing the market, expectations, and confidence. Policies are tailored to control new supply, reduce inventory, and optimize supply, aiming to stabilize the real estate market. While focusing on demand-side policies, the city continues to promote other measures, including optimizing market supply, precise regional supply, coordinating market and保障, and encouraging the purchase of second-hand homes for leasing, among other efforts to ensure stable market operation.

Shanghai Financial Illustration · Key Points